What is NAMA and Project Eagle?
During the financial crisis Ireland's banks were overwhelmed with bad loans lent to developers, many of who would never be repaid. The State set up the National Assets Management Agency or NAMA to sort out the problem.
It bought the bad loans from the banks at a steep discount and then sold them off to the highest bidder. The loans to developers in Northern Ireland were bundled together into an enormous portfolio called Project Eagle.
Who provided advice?
NAMA set up a Northern Ireland Advisory Committee in 2009 to offer guidance on the sale. It had two external members one of whom was Frank Cushnahan a well-known businessman from the North. He resigned from the advisory committee in 2013.
What happened next?
NAMA set up a sales process. US fund PIMCO was interested in purchasing Project Eagle. During discussions with Nama in 2014 PIMCO disclosed it planned to pay a £16 million success fee to two law firms Brown Rudnick and Tughans, and to Frank Cushnahan.
The Nama board discussed whether PIMCO's bid was "fatally flawed" given the perception that it benefited from "insider information", according to a report from the Comptroller and Auditor General. PIMCO then withdrew from the sales process.
So, who bought the loans?
The loans in Project Eagle were subsequently sold to a US group called Cerberus for €1.6 billion in 2014. It was the biggest property transaction in the North’s history. Cerberus also hired Brown Rudnick and Tughans for the latter stages of its purchase.
What was the controversy?
In 2015 the then Independent TD Mick Wallace made several claims in the Dáil regarding the sale of Project Eagle. He alleged that there were funds which were "reportedly earmarked for a Northern Ireland politician". He said that law firm Tughans which acted for Cerberus had found £7 million and had been transferred to an Isle of Man bank account.
What happened next?
The Dáil’s Public Accounts Committee investigated whether NAMA got value for money. In a statement to the Committee the chief executive of NAMA, Brendan McDonagh, said: "It is clear that NAMA got the best achievable price from the sale of Project Eagle." He told the Committee: "I understand why the role of Frank Cushnahan continues to attract attention - but it had no impact on NAMA achieving £1.322 billion."
What did the Government do?
The Government set up a commission to investigate in 2017. Its terms of reference were to inquire if the sale of the loans was "appropriate" and whether "any conflicts of interest arising in relation to members of NAMA’s Northern Ireland Advisory Committee were managed appropriately".
It was also asked to establish: "When and how NAMA became aware of fees allegedly payable to a former member of the Northern Ireland Advisory Committee by bidders on Project Eagle, and if this issue was managed appropriately by NAMA during the sale."
What has happened in Northern Ireland?
Frank Cushnahan and Ian Coulter, a former partner, in Tughans were charged with fraud. Both have pleaded not guilty and deny any wrongdoing. Mr Cushnahan is charged with fraud for allegedly failing to disclose information to Nama between 1 April 2013 and 7 November 2013.
Mr Coulter is alleged to have made false representation to a law firm on or around 11 September 2014. The case is expected to be heard this year.
Read more:
Investigation criticises NAMA's sale of assets in NI
